Work Session
June 15, 2009
Present were Mayor Bertrand, Councilors Remillard, Lafleur, McCue, Landry, Cayer, and Goudreau; Councilors Poulin and Evans were absent. Others present included Andre Caron, Patrick MacQueen, Peter Morency, Scott Gregory, media and public
Application for Downtown Tax Relief Incentive
Mayor Bertrand summarized by saying that Scott and Heather Gregory, owners of Winterland Marketplace, have applied for a downtown tax exemption under Chapter 19 of the City Ordinances. If approved, tax assessments would not change on the improvements made to the Main Street location. Mr. MacQueen added that the law that was passed for improvements to the downtown and has been used once so far. Per the ordinance, the Council needs to set a public hearing for July 6.
Councilor McCue confirmed that the value that will be taxed is $150,500 which is the current value of the building. Betterments will not be taxed for five years. Mr. Caron noted that if the Gregory’s were to fail to follow the plan submitted in the application, taxes would go back to beginning. The Council will have to find that the project is a public benefit that enhances the vitality of the downtown; and the project encourages the rehabilitation of the many underutilized structures in the downtown as a means of encouraging growth in accordance with RSA 9-B.
Councilor Remillard questioned the number of years that the Council is allowed to grant an exemption for and Mr. Caron explained that additional years over five would be for specific improvements such as adding residential units and historic preservation.
Mr. Gregory explained that the business will be a restaurant and three store fronts on the main floor. The upstairs will be mercantile, as well. The business will have a front and rear entrance and there is plenty of parking in the back, on Main St and in the municipal lots.
Councilor Cayer asked to see a definition of mercantile. Mr. Gregory indicated that two of the three mercantile spaces are spoken for and there will be the restaurant as well. There will be a new business to Berlin and one relocation from Whitefield. It is the Gregory’s hope to open before August. Mayor Bertrand acknowledged that the Council will schedule a public hearing for July 6 and there will then be a covenant after that.
Discussion of Fiscal Year 2010 Proposed Budget
Mayor Bertrand established that the remaining budget items being discussed included increasing the funding for the Health and Recreation Departments to 2009 levels; and administrative positions retiring and working part time. There is a correction to the school debt service that needs to be made.
As another item to consider, Mayor Bertrand explained that there is a shortfall at the airport this year of about $15,000 due to lack of jet fuel sales. There is also a land sale that is about to occur and it was suggested that the proceeds from the sale of the property be used as a revenue; however adding this sale to the operating budget skews the economic picture of the airport. The vote of the BAA was to approve the financials but not consider the $25,000 from the land sale as revenue. The airport is carrying debt of about $71,000 and if the city chooses not to fund the shortfall, the proceeds from the land sale would be used to decrease the accumulated deficit.
Mr. MacQueen added that the airport is a city function and though the County and Town of Milan have a seat on the BAA, no other entity funds the operating budget; debt is underwritten by the Berlin taxpayers.
Councilor Goudreau voiced his opposition to funding the comptroller’s position at part time level, stating that he cannot believe it is a part time job.
Councilor Lafleur indicated that he will move forward with the motion to fund the Health Department as well as the Recreation & Parks Department at current year’s level and Mayor Bertrand reiterated that it will take a 2/3 majority or five affirmative votes to raise the proposed budget amount.
Mayor Bertrand confirmed that a motion is needed to incorporate a savings from school debt service into the budget.
With regard to part time administrative positions, Mayor Bertrand pointed out that the Council does not have line item control over the Police Department and an increase to their budget intended to fund the Police Chief at full time could be allocated as the Commission sees fit. Mr. MacQueen noted that the Commission has entered into a five year contract with the Chief starting July 1. Councilor McCue expressed some frustration that constituents have raised the issue of employees retiring and continuing to work part time and by the Police Commission setting this contractual arrangement, the underlying issue has been hijacked.
Councilor Cayer reasoned that for now it is working; there is no public outcry and it is saving the City money. Councilor Goudreau warned that this is a dangerous practice and adds to the problems of the retirement system
Mayor Bertrand noted that if the line item is increased and the funds are not expended, they will go toward operating surplus for next year, then to Unappropriated Fund Balance if there is an overall operating surplus. Councilor Goudreau indicated that he will make the motion on the floor to fund the comptroller’s position at full time.
Councilor McCue asked what happens with the CIP and bonding and Mr. MacQueen stated that the CIP will need to be re-vetted in order to come up with the amount of the bond issue.
Other
Communication from Fran Buteau. Councilor McCue commented on the letter from Fran Buteau in the packet as well as a subsequent letter from Ms. Buteau dated today. He noted that concerts were not originally the bone of contention and they have been going on for several years. There is a separate problem with the youth group. Councilor Lafleur added that the original problem was parking. Mr. MacQueen confirmed that he would get an update of the status of what has been determined by the building inspector regarding using the building for the youth group. Councilor Landry said that he spoke with Mr. Small who confirmed that the building is leased through August; however he did not say if the lease would be renewed.
Resolution 2009-25. Councilor McCue asked what specialized equipment would be purchased with the JAG grant money. Chief Morency responded that the money is allocated based on crime statistics. The funding will allow the department to pick up items not usually funded: simmunitions and all terrain vehicles as they are no longer funded.
BIDPA Board Members. Mayor Bertrand indicated that he would be recommending the appointment of Michael Caron & Jay Poulin to the BIDPA board for Council’s approval. Councilor Goudreau confirmed that if HEB were to be working on a project for BIDPA, Mr. Poulin would have to recuse himself from the discussion.
Mayors’ Meeting. Mayor Bertrand noted that he will be in Concord to meet with several of the Mayors in the State regarding their position on downshifting State obligations to cities and towns. Mr. MacQueen added that in addition to revenue sharing, the State is proposing downshifting by not fully funding their portion of the State Retirement. There are also State aid grants for waste water that the City relied on when agreeing to a figure for providing sewer to the Bureau of Prisons that are not funded.
There being no further business in the work session, Mayor Bertrand moved on to the Public Hearing.
Respectfully Submitted
Susan Tremblay
Administrative Assistant
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